Cisco Systems, Inc.

and
Introduction to Systems
Development

MBAA 609
R. Nakatsu

Enterprise Resource
Planning
ERP is a cross-functional enterprise
system driven by an integrated
suite of software modules that
supports the basic internal
processes of a company.
Applications: Human Resources,
Financials, Supply Chain
Management, Manufacturing, CRM

Benefits of ERP
Better quality in terms of improving a
companys internal business processes
Better integration of applications
Better decision support in terms of
providing vital cross-functional information
on business performance
Reduction in support and maintenance
costs
Question for discussion: What are some
of the problems and limitations of ERP?

Background on Cisco
What

kind of company is Cisco? What

is it most famous for?
What is the context of the case?
(Describe the (1) internal and (2)
external (i.e., environmental) factors
under which Cisco is operating).
What was the initial approach at Cisco
for developing IT?
Why ERP?

How does the Internet

(TCP/IP) work?
Packet-switched network:
information is broken into packets by
TCP/IP.
Dynamic routing: even if one part of
the network is knocked out, packets can
be rerouted around the problem. Demo
Highly decentralized: millions of
servers reside all over the world; nobody
really owns the Internet

Questions on Case
Question 1: At the start of the case, Ciscos information systems are
failing, yet no one steps forward to lead the effort to replace
them. Why is this? Why were no managers eager to take on this
project?
Question 2: Cisco was highly successful with its enterprise resource
planning (ERP) effort. What accounts for this success? What
were the most important things that Cisco did correctly?
Question 3: What is rapid iterative prototyping? Briefly describe
three things that enabled a quick implementation during rapid
iterative prototyping (see pp. 8 10 of the case).
Question 4: Did Cisco do anything wrong on this project? If so,
what?

Implementing Quickly
What is rapid iterative prototyping?
CRP0: how did they work quickly in this
phase?
CRP1: each track works in parallel; how did
they manage scope creep?
CRP2 AND CRP3: most difficult part of the
implementation; utilization of a data
warehouse; full commitment by the IT Dept.

Change the business

process or change the

software?
Why was Cisco reluctant to change the
ERP softwarethat is to say, why is it
sometimes more desirable to change
your business process to fit the
software?
Is this always the case?

Main Takeaways of
Cisco
Understand Case
the following:

What ERP is and what its benefits and problems are

The internal and external factors of Cisco that led it
to ERP. Why ERP?
Why lower and mid-level managers were reluctant to
volunteer to take charge
What the best practices are for developing a big
system like ERP
What the purpose of rapid iterative prototyping is
What Cisco might have done differently
Why it is sometimes better to change the business
process rather than the software.